Congress Has a Clear Path to Fix the Penny Problem

The penny shortage has been creating real challenges for retailers and consumers for months. Now, Congress has a clear opportunity to finish the job. 

The House is expected to once again consider the Common Cents Act, bipartisan legislation that would provide a consistent federal framework for rounding cash transactions as penny circulation continues to decline. The House previously passed a version of the bill, and the Senate has since approved its own version. Now, with the legislation moving back through the House, lawmakers can take another important step toward sending a final bill to the president’s desk. 

For retailers, the need is straightforward: businesses that accept cash need clear, uniform rules for how to handle transactions when pennies are increasingly unavailable. 

The end of penny production has created a practical problem at the register. Retailers are still accepting cash, consumers are still using cash, and businesses are still required to complete transactions accurately and fairly. But when exact change cannot be provided, retailers are left navigating uncertainty over how to round transactions, how to comply with different state and local rules, and how to avoid creating confusion for shoppers. 

That uncertainty is not sustainable. 

Without a federal standard, states have begun moving in different directions. Some have enacted laws. Others have issued guidance. Still others are considering their own approaches. State action is understandable because retailers, consumers, and agencies all need answers. But a patchwork of state rules is not an effective solution for a national retail marketplace. 

Retailers operate across state lines. Consumers shop across state lines. Payment systems, point-of-sale technology, and compliance programs are often built at scale. A transaction in one state should not be governed by one rounding rule while a transaction in another state is governed by a different one. 

The Common Cents Act would help solve that problem by establishing a consistent national standard. It would allow cash transactions to be rounded to the nearest nickel under clear rules, while electronic payments would continue to be processed to the exact cent. That distinction is important. This is not about changing the price of goods or altering card transactions. It is about creating a practical solution for cash purchases when pennies are not available. 

A federal framework would also help protect consumers. Clear rules ensure rounding is applied consistently and transparently, rather than leaving shoppers and employees to navigate uncertainty at the register. Consumers should know what to expect, and businesses should have confidence that they are following the law. 

Legal certainty matters as well. Retailers should not be exposed to conflicting requirements or frivolous lawsuits when they are trying to manage a problem created by the declining availability of pennies. A national standard would provide a clear safe harbor for businesses that follow uniform rounding procedures. 

The issue may sound small because the penny is small. But the operational impact is not. Millions of transactions take place every day across the retail economy, and even small uncertainties can create significant complications when they occur at scale. 

The Common Cents Act is a practical, bipartisan solution to a practical problem. It protects cash transactions, supports consistency across the country, and gives retailers and consumers the clarity they need during the transition away from the penny. 

Congress has already made significant progress. The House acted. The Senate acted. Now lawmakers have an opportunity to bring the process one step closer to completion. 

The path forward is clear: pass the Common Cents Act, establish one federal standard, and ensure the end of the penny does not create unnecessary confusion for businesses or consumers.